THIS invention relates to a system for conducting a financial transaction between a purchaser and a vendor of a product, and to a method of conducting such transactions.
Efforts by banks to provide customers with improved service and access to banking facilities have resulted in an increasingly large number of automatic teller machines (ATM""s) being installed at shopping centres and at banks themselves. The ATM network has consequently grown to cover almost every corner of the country and, at least in urban areas, an ATM can easily be accessed by a large percentage of the population.
ATM""s are particularly attractive to both banks and customers as they allow bank customers to perform routine banking transactions at locations and times that are convenient to the customer. The need for over-the-counter service personnel at banks has also been reduced as more customers make use of ATM""s to withdraw and deposit cash, and to obtain financial statements relating to their bank accounts. Banks have also benefitted from the increased number of banking transactions that have occurred as a result of the proliferation of ATM""s in that increased revenues have been generated as transaction fees.
While the success of ATM""s is undoubted, the services currently offered by ATM""s are limited, and the capabilities of ATM""s have not been fully exploited.
According to the invention there is provided a method of conducting a financial transaction between a purchaser and a vendor of a product, the method comprising the steps of:
providing a computerized banking system comprising a plurality of financial institutions; each of said plurality of financial institutions comprising a computer centre comprising a plurality of computer based client accounts, an electronic data network interconnecting said computer centres; and a plurality of data exchange terminals connected to the said network;
providing at least one vendor database including product related information connected to the said network;
communicating to the database via the network product related information regarding a product required by the purchaser and which information is provided by the purchaser via one of said terminals; and
automatically initiating payment by the purchaser for the product in an amount equal to the value of the transaction.
According to a preferred embodiment of the invention there is provided a method of conducting a financial transaction between a purchaser and a vendor of a product, the purchaser and the vendor being associated with respective first and second accounts held at respective first and second financial institutions, the method comprising the steps of:
providing at least one vendor database including product-related information;
linking a data exchange terminal to the at least one vendor database;
obtaining transaction-related information from the purchaser via the data exchange terminal;
communicating the transaction-related information to the at least one vendor database;
linking the terminal to the first financial institution to provide access to the first account;
linking the terminal to the second financial institution to provide access to the second account; and
transferring funds electronically between the first and second accounts for the value of the transaction.
The first and second financial institutions may comprise the same financial institution.
The transferring of funds electronically typically may involve debiting the first account and crediting the second account.
The method preferably includes the step of obtaining an access code from the purchaser to verify authorization of the transaction.
In one envisaged application, the funds may be transferred electronically between the first and second accounts in real time response at the conclusion of the transaction.
Alternatively, the funds may be transferred electronically between the first and second account at a predetermined future time.
The terminal preferably includes display means, and the method preferably includes the step of displaying at least one enquiry menu on the display means to obtain transaction-related information from the purchaser.
The method may include the step of incorporating icons associated with options relating to the transaction into the at least one enquiry menu so that the purchaser is able to provide the transaction-related information by selecting an icon displayed on the display means.
The method preferably includes the steps of displaying at least part of the product-related information on the display means, and updating the product-related information in real time response or on the occurrence of a transaction between the purchaser and the vendor.
Typically, the transaction-related information may include at least the value of the transaction and details of the first account to or from which funds are to be electronically transferred.
The method preferably includes any one or more of the steps of verifying the availability of funds in the first account, the availability of the vendor product or the qualification of the purchaser to perform the transaction before conclusion of the transaction.
Conveniently, the method may include the step of printing a record of the transaction which serves as proof of the transaction.
The method may also include the step of reading indicator means at the terminal, the indicator means being configurable by the purchaser to indicate the transaction-related information.
In the envisaged embodiment, the method may include the step of incorporating the transaction-related information into a statement issued by the first or second financial institution to the purchaser or vendor.
According to a second aspect of the invention there is provided a system for conducting a financial transaction between a purchaser and a vendor of products, the system comprising:
a computerized banking system comprising;
a plurality of financial institutions;
each of said plurality of financial institutions comprising a computer centre comprising a plurality of computer based client accounts;
said computer centres being interconnected by an electronic data network;
a plurality of data exchange terminals connected to the network;
at least one vendor database comprising product related information connected to said network; and
system software for facilitating communication of product related information between said plurality of publicly accessible terminals and the said at least one vendor database and for initiating payment by the purchaser for products purchased.
According to a preferred embodiment of this aspect of the invention there is provided a system for conducting a financial transaction between a purchaser and vendor of a product, the purchaser and the vendor being associated with respective first and second accounts held at respective first and second financial institutions, the system comprising:
a data exchange terminal including data input and output means;
at least one vendor database including product-related information;
communication means for linking the terminal to the at least one vendor database, the first financial institution and the second financial institution; and
system software for facilitating communication between the terminal, the at least one vendor database, the first financial institution and the second financial institution, and for transferring funds electronically between the first and the second accounts for the value of the transaction.
The first and second financial institution may be the same financial institution.
The data exchange terminal is preferably a bank service terminal, such as an ATM.
The communication means preferably comprises an ATM network to which the terminal, the at least one vendor database, and the first and second financial institutions are linked to facilitate the communication therebetween.
Conveniently, the system software preferably facilitates the transfer of funds electronically between the first and second accounts in real time response at the conclusion of the transaction, or at a future predetermined time.
The terminal, the first or second financial institution or the at least one vendor database may have storage means for storing the product-related information, at least part of the system software or transaction records, and wherein the product-related information or the transaction records are accessible at the publicly accessible terminal.
The system may include a portable storage device adapted to store product-related information and/or at least part of the system software and/or transaction records.
The portable storage means preferably comprises a smart card.
The product-related information is preferably accessible via the data output means of the terminal and may be updatable in real time or on the occurrence of a transaction between the purchaser and the vendor.
The data output means of the terminal preferably includes a screen, and the system software includes menu drivers for producing enquiry menus on the screen using which the purchaser provides transaction-related information via the data input means of the terminal to the system.
The enquiry menus may include icons associated with transaction options, and the purchaser is preferably able to select a transaction option by selecting an icon using the data input means.
The communication means may include conventional telephone lines and interface means for allowing the at least one vendor database to communicate with the terminal, utilizing established ATM message protocols.
Typically, the terminal may include printing means for issuing a record of the transaction or a voucher which serves as proof of the transaction.
In a preferred embodiment, the data input means of the terminal may include a reader for reading an indicator means configured by the purchaser to indicate transaction-related information.
The reader preferably comprises an optical reading device, and the indicator means comprises a card configurable to visually indicate the transaction-related information.
The invention also includes within its scope a system for conducting a financial transaction between a purchaser and a vendor of products, the system comprising an electronic data network including bank service terminals for use by a purchaser; at least one vendor database comprising product related information connected to the network; and system software for facilitating communication of product related information between said terminals and the said at least one vendor database and for initiating payment by the purchaser for products purchased.